BILL NUMBER:S7936

TITLE OF BILL:  An act to amend the real property tax law, in relation
to expanding eligibility for the low interest rate program of the
state of New York mortgage agency to certain graduates of post
secondary education programs

PURPOSE OR GENERAL IDEA OF BILL:

To expand eligibility for the Low Interest Rate Program (LIRP) of the
State of New York Mortgage Agency (SONYMA) to graduates of post
secondary education for a period of seven years after graduation.
Qualifying individuals will be eligible for a thirty-year mortgage at
a rate of 1.5% lower than the standard interest rate offered for a
period of 10 years.

SUMMARY OF SPECIFIC PROVISIONS:

Section one adds section 457-a which expands eligibility for low
interest rate program of the State of New York Mortgage Agency
(SONYMA) to graduates of post secondary education for a period of
seven years after graduation to participate in Low Interest Rate
Program (LIRP) with SONYMA; a thirty-year mortgage at 1.5% lower than
the standard interest rate offered for a period of 10 years and,
directs the Commissioner of SONYMA to promulgate rules and regulations
necessary for the administration of the program.
              

Section two sets the effective date.

JUSTIFICATION:

The purpose of this legislation is to encourage homeownership in local
neighborhoods by providing support to young professionals with student
loan debt to help them purchase homes and grow their roots in Western
New York.

Support to first-time homebuyers is a sound investment and a critical
component of our overall efforts to strengthen area neighborhoods.
This legislation will help to address several issues facing Western
New York, including the exodus of college graduates from the City of
Buffalo, blight created by vacant housing within the City, and the low
rate of home ownership in distressed neighborhoods. It aims to entice
recent college graduates, who are often balancing rent and student
loans, to make a long-term investment in Buffalo's future by buying
homes in disadvantaged areas of Western New York.

While Buffalo is in the midst of an economic resurgence, it still
faces a housing crisis. As of the 2010 Census, Buffalo had a vacancy
rate of over 15 percent, with the 2012 American Community Survey
reporting over 23,000 vacant units throughout the city. At the same
time, local families continue to watch their children and
grandchildren leave the area after graduating from college. As growth
continues through the region and new jobs are created, this bill will
encourage more of these new workers to buy homes in the city.

PRIOR LEGISLATIVE HISTORY:


This is a new bill.

FISCAL IMPLICATIONS:

Undetermined.

EFFECTIVE DATE:

This act shall take effect on the thirteenth day after it shall have
become law; however, provided that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date is authorized
and directed to be made and completed on or before such effective
date.